Tel Aviv Diary September 22, 2023

Violence in the West Bank and Gaza, as Netanyahu Meets Biden;Talks Peace with Saudi Arabia, More Start-Ups Funded, History and a Review

WOMEN TO SERVE AS ELITE COMMANDOS

This week, the IDF announced that in response to a petition submitted to the Supreme Court, the army will open its most elite commando unit, Sayeret Matkal, to women candidates for the first time. This most recent development is the latest in a series of gradual steps to allow women acceptance into nearly every elite military unit. The Religious parties immediately voiced their objections, as they oppose the idea of women serving in any combat role.

IDF IN JENIN, THE GAZA BORDER, THE WEST BANK

On Tuesday, the army encountered fierce resistance in the Jenin refugee camp, while attempting to demolish the home of a terrorist. Forced to escalate their efforts, the army resorted to using shoulder-fired missiles to complete the mission. The operation resulted in the death of two Palestinians, and left over a dozen wounded.

Throughout the past week, Palestinians have been rioting along the border fence in Gaza. On Wednesday, the IDF employed snipers in an effort to push protesters away from the border. On Thursday the Palestinians began to release incendiary balloons which floated toward Israel.  One caused a fire in a forest near Gaza.

There have also been multiple stabbing attempts in the West Bank, specifically at checkpoints between the West Bank, inside Israel, as well as in Jerusalem. Fortunately, none of these attacks resulted in any fatalities, except for the assailants.

NETANYAHU VISITS THE US

Prime Minister Netanyahu spent this past week in the United States. As Netanyahu departed from Ben Gurion Airport, he made a controversial statement against the protest movement. The Prime Minister asserted that combat veterans, former heads of Israel’s security services, and high-tech workers have joined forces with the Palestine Liberation Organization (PLO) and Iran.

Netanyahu continued … “They have crossed all borders. They have made it so that blocking roads is [ostensibly] a normal thing, that violently harassing public figures is a normal thing, that refusal [to serve in the military and in the reserves] is a normal thing. And therefore, when they defame Israel before the nations of the world, it seems normal to them. I don’t regard it as normal. When I was the head of the opposition, I never did that … But this time, we see demonstrations against Israel by people that are joining forces with the PLO, with Iran, and with others.

Criticism against Prime Minister Netanyahu for his outrageous, incendiary, and slanderous accusations was immediate and overwhelming, forcing him to issue a clarification. Netanyahu stated he only meant to suggest that certain groups were inadvertently advancing the agendas of the PLO and Iran.

NETANYAHU, MUSK, AND AI

Netanyahu's first stop was in San Jose, where he met with Elon Musk. The primary focus of their meeting was artificial intelligence (AI). Both engaged in a substantive, if not groundbreaking, dialogue about the potential benefits and dangers of AI. Despite his genuine interest in the subject, Netanyahu has been shunned by members of Israel's high-tech community, who refuse to engage with him on AI topics as long as the judicial overhaul continues.

The meeting with Musk was controversial, given perceptions that Musk has enabled antisemites by allowing them back on his platform “X”, and criticizing the Anti-Defamation League (ADL) for their stance against what they define as hate speech. Netanyahu praised Musk and affirmed that he did not believe Musk to be antisemitic. However, the Prime Minister did request that  Musk act to curtail antisemitism on his platform, while continuing to maintain free speech.  During the pair’s live broadcast on platform X, Musk inquired about judicial reform in Israel. Netanyahu's misleading response generated news, when the Prime Minister admitted the initial proposal had gone too far. Bibi even went as far as to claim he believed those protesting outside the Musk meeting really do not understand what they are protesting against.

Both upon his arrival in San Jose, and during his meeting with Musk, Netanyahu was greeted by protesters opposing the judicial reforms. Those protest followed him wherever he went in the U.S.

Protesters Outside the Biden Netanyahu Meeting

NETANYAHU MEETS WORLD LEADERS AT THE UN

On Monday night, Netanyahu flew to New York for a series of meetings at the United Nations. On Tuesday, he met with German Chancellor Olaf Scholz, and for the first time, Netanyahu met in person with Ukrainian President Vladimir Zelensky. While Zelensky requested military aid, Netanyahu explained that such assistance was impractical, offering only ongoing humanitarian support instead.

Netanyahu also held discussions with Turkish Prime Minister Erdogan and UN Secretary-General António Manuel de Oliveira Guterres. Netanyahu’s most crucial meeting took place with President Biden. Prior to the encounter, hundreds of demonstrators gathered outside to protest the judicial reforms being promoted by Netanyahu’s government.

NETANYAHU, BIDEN, & ISRAEL

Before their discussion commenced, President Biden made an unprecedented comment outlining part of his rationale for supporting Israel. “Because even where we have some differences, my commitment to Israel, as you know, is ironclad. I think without Israel, there’s not a Jew in the world who’s secure. I think Israel is essential,”

Biden is without doubt the first President who is a true Zionist. According to both American and Israeli sources, the meeting between the two nations was cordial, given their four-decade-long relationship. A significant portion of the discussion focused on the possibility of striking a deal with Saudi Arabia, with the topic of judicial reform also taking center stage.

ISRAELI NORMALIZATION WITH SAUDI ARABIA

The emerging deal between the United States and Saudi Arabia appears to involve a defense treaty, along with the provision of technology for the construction of nuclear power plants. A major sticking point remains Saudi Arabia's desire to have the capability to enrich uranium. The  Saudi demand has raised concerns within Israeli defense authorities, as this would allow the Saudis to develop nuclear weapons. Prime Minister Netanyahu has instructed Israeli officials to explore technical solutions to this issue.

In order to secure an agreement with Saudi Arabia, another key consideration is what concessions Israel might have to make to the Palestinians. Eighteen members of the Likud party in the Knesset have already sent a letter to Netanyahu stating their opposition to any deal that involves concessions to the Palestinians. This does not even account for the staunch negative positions held by the parties led by Smotrich and Ben-Gvir, who have stated they will topple the government to prevent any such concessions.

The pros and cons of a potential deal with Saudi Arabia have been summarized in an article written by a friend of mine: Is the Saudi Deal a Dream or a Nightmare?.

PROTESTS!

Meanwhile, protests continue to gain momentum. With the end of the holiday season approaching, there is growing concern that the coalition might proceed to plow ahead with their proposed changes to the judicial system, despite the overwhelming, widespread opposition. A segment aired on the popular CBS “60 Minutes” was largely sympathetic to the protest movement. Leslie Stahl spoke with several members of “Achim LaNeshek” (Brothers and Sisters in arms). Among those interviewed was Shir Eting, a former helicopter pilot, who shared her perspectives on the current judicial overhaul crisis.

Here’s an excerpt:

Shira Eting: “If you want pilots to be able to fly and shoot bombs and missiles into houses knowing they might be killing children, they must have the strongest confidence in the people making those decisions.” Ron Scharf: “In the moral values of them.” Shira Eting: “Exactly.”

Eting’s comments set off a firestorm of false accusation by Bibi supporters, one of his most extreme supporters, Caroline Glick, wrote: “This woman [Eting] is a liar. The IDF never orders or permits bombing children. These Israeli anarchists are perpetrating a blood libel against the Israel Air Force, the Israel Defense Forces and against the State of Israel. This isn't about judicial reform. These people hate Israel.”

Of course Eting never said the IDF orders the killing of civilians, but we all know there have been cases of unintended collateral damage when attacking legitimate targets.

BUSINESS

A significant number of Israeli companies received financing again this week. This follows an extended period when few companies were getting funded. The valuations of Israeli hi-tech firms are still down, but deserving companies are successfully getting funded.

On Tuesday, Cybersecurity company, Kaito Networks, led by Shlomo Kramer announced that it raised $238 million at a valuation of $3 billion, post-money. The previous funding round for Kaito was declared in October 2021, valuing the company at $2.5 billion, making this current round an uptick in valuation. While relatively modest, this valuation improvement is somewhat rare in today's venture capital landscape amidst the startup market turmoil. Since its founding in November 2020, Kaito has raised a total of $1 billion, including the current round. Unlike the previous round in 2021, there are no plans for a secondary transaction where stockholders would sell their holdings.

A little over a year ago, Darrow, a legal tech startup, was on the verge of closing a new funding round during the early days of the technology market crisis. The leading investor suddenly withdrew right before the final signing, causing significant distress. However, the setback ultimately strengthened the company, and they chose not to lay off employees. Today, Darrow announced a $35 million funding round led by Canadian fund Georgian, with participation from existing investors NFX, Entry Capital, and F2. This is the company's first funding round since 2021, bringing their total funding to $59 million, including the current round. Darrow currently employs 91 people.

Today, the startup Hibob announced a $150 million funding round, coming just a year after their previous $150 million funding round. In total, the company has raised $574 million to date. This latest round was led by Paralon Capital, along with Alpha Wave Global. Hibob, founded in 2015, specializes in employee management software. The company was established by four entrepreneurs: CEO Ronni Zehavi, CTO Israel David, and former members Amit Kanani and Andy Bellass who left the company two and three years after its founding, respectively. Hibob's software enables the automation of HR-related tasks such as onboarding new employees, generating reports, or approving employee leave. It also functions as an internal social network where employees can share hobbies and skills, praise each other, and complete surveys and polls related to work.

Israeli Ag-tech company Treetoscope announced a $7 million funding round today, led by Israeli fund Amphel Capital and featuring participation from Seed-IL, the American YYM Ventures Family Office, the Italian LCA fund, and others. Founded in 2021 by Dotan Eshed, CEO of the company, and Uri Ahiman, CTO, Treetoscope operates in the field of precision agriculture. Their technology aims to reduce resource usage like water and fertilizer while increasing crop yields. However, the adoption of such technologies in the vast agriculture sector tends to be slow due to cost concerns among farmers.

The Israeli cybersecurity startup Legit Security raised $40 million in a Series-B round. The round was led by CRV, a venture capital firm that has also invested in companies like Twitter, DoorDash, Dropbox, and the Israeli company Zerto, which was sold to HPE. Other long-term investors in the company, including Bessemer Venture Partners, TCV, and Cyberstarts, also participated in the funding round. With the current round included, the company has raised a total of $77 million to date.

Elbit Systems Ltd. announced today that it was awarded a $95 million contract to supply SkyStriker loitering munitions (LM) to a European country. The contract will be carried out over a period of two years. As part of the contract Elbit Systems will provide several hundred SkyStriker units.

Elbit Systems' SkyStriker LM is a fully autonomous loitering munition that can locate, acquire and engage operator designated targets with a warhead of up to 10 Kg, enabling high-precision performance. SkyStriker can be launched from a variety of ground and aerial platforms, including from a dedicated canister on Elbit Systems' PULS™ (Precise and Universal Launching System) rocket artillery systems. Equipped with an electrical engine, the SkyStriker enables covert operations of up to 2 hours and with a range of 100km. The system can precisely strike targets while maintaining a "man in the loop" even in GPS and communication denied environments.

Elbit Systems Ltd. announced that it was awarded a $95 million contract to supply SkyStriker loitering munitions (LM) to a European country. The contract will be carried out over a period of two years.

As part of the contract Elbit Systems will provide several hundred SkyStriker units.

Elbit Systems' SkyStriker LM is a fully autonomous loitering munition that can locate, acquire and engage operator designated targets with a warhead of up to 10 Kg, enabling high-precision performance. SkyStriker can be launched from a variety of ground and aerial platforms, including from a dedicated canister on Elbit Systems' PULS™ (Precise and Universal Launching System) rocket artillery systems.

Equipped with an electrical engine, the SkyStriker enables covert operations of up to 2 hours and with a range of 100km. The system can precisely strike targets while maintaining a "man in the loop" even in GPS and communication denied environments

.A PIECE OF HISTORY—

A Piece of History  — Six Day War: Part 1

JUNE 5th 1967

The Israeli Air Force had been preparing for an attack on Egyptian bases for several years. Early in the morning on June 5th, nearly all of Israel's Air Force, totaling 250 planes, was airborne. The slower Ouragan bombers and Mystere fighters departed first, followed by the faster Mirages. All were en route to Egyptian airbases and were scheduled to arrive simultaneously. At 7:30 am, while Egyptian pilots were having breakfast, the Israeli planes reached their targets. Initially, they dropped large bombs on both ends and the middle of the runways, effectively disabling them. With the Egyptian planes now trapped, the Israeli forces proceeded to strafe the airfields. By 8:00 am, it was clear that the operation had succeeded beyond its planners' expectations. The pilots returned to their bases, where their planes were quickly refueled and rearmed for a second strike. After this second wave, 286 Egyptian planes were destroyed, and all Egyptian airfields were rendered inoperative. It was the most successful air attack in history. Upon hearing of this success, army headquarters gave orders for ground troops to initiate their attacks.

In the Northern Sinai, an Israeli armored brigade broke through Egyptian lines. After a day of heavy fighting, Israeli troops had, by evening, achieved all their objectives well ahead of schedule. In the South, a division led by Ariel Sharon experienced similar success, penetrating Egyptian defenses and advancing deep into Sinai.

Israel had hoped that Jordan would stay out of the conflict. However, unaware of Israel's aerial successes, the Jordanians felt they had no choice but to support Egypt. They began heavily shelling the outskirts of Tel Aviv and the Israeli Air Force Base at Ramat Aviv in the North. They also initiated a massive bombardment of West Jerusalem, where 6,000 shells landed. Over 1,000 civilians were wounded, and 20 died. The Jordanian Air Force also targeted locations in Israel. Initially, Israel refrained from attacking Jordanian bases, but in response to the Jordanian aggression, they destroyed the Jordanian Air Force. Attacks were also carried out against the Iraqi and Syrian Air Forces. The Jordanians subsequently captured Government House, which commanded the high ground over Jerusalem. This action, coupled with a Jordanian threat to capture Mount Scopus, convinced the Israelis to begin an offensive against the Jordanian Army. By the nightfall of June 5th, Israeli forces had advanced sufficiently to isolate Jerusalem from Ramallah, thwarting an attack on Mount Scopus while additional troops advanced on Jenin.

A TASTE OF TEL AVIV—HASHOFTIM BAR

RESTAURANT REVIEW, by Tali Schulman

Founded in the late '80s, Hashoftim is one of the most well-known neighborhood bars in the city. It's renowned for its old-school Tel-Aviv vibe that has remained unchanged as the city evolved around it. While the drinks aren't extravagant, they offer a good selection of draft beers, and every beverage comes with an unlimited supply of delicious roasted chickpeas.

The food menu is as Tel Aviv as it gets. Offering array of toasted sandwiches, crispy onion rings, hummus, and chopped liver and more — the menu feels very uniquely Tel Aviv.

If you're in search of a low-key spot for happy hour with friends, make sure to check out Hashoftim. I recommend sitting outside for a quieter and more well-lit experience, but be sure to step inside to immerse yourself in Tel Aviv's history. Personally, I enjoy ordering the vegetable plate, which is accompanied by tahini and serves as an excellent snack alongside any drink. Hashoftim is a time capsule of Tel Aviv's past, making it a must-visit for an authentic experience.

For more Tel Aviv restaurant recommendations, you can find me on Instagram @talischulman where I save all my food adventures in my highlights!